Vietnam International Bank (VIB) and the International Finance Corporation (IFC) have finalized a medium and long-term loan agreement to enhance financial resources for lending activities to individual customers for home purchases and renovations and especially to promote lending for low-value home purchases.

The newly-signed loan agreement with the IFC amounts to $100 million, with a term of five years, and increases the total credit limit granted by the IFC to VIB to $450 million, including two loans of $250 million and a commercial funding limit of $200 million.

VIB will now have additional financial resources to strengthen and expand lending activities for individual customers seeking home purchases and renovations. Within the scope of the agreement, VIB commits to allocate a minimum of $30 million to finance home purchases valued below $55,600.

This commitment also demonstrates VIB’s alignment with the government’s goals of addressing difficulties in the real estate sector and boosting the disbursement of support packages.

“In the context of global economic and political fluctuations affecting capital markets, VIB’s continued achievement in signing agreements with IFC reaffirms and strengthens the long-term and sustainable cooperation between the two parties,” said a representative from VIB. “Moreover, successful capital mobilization in the current economic situation also helps VIB enhance financial resources for lending activities to individual customers for home purchases and renovations, stimulating credit demand, which has been stagnant in the real estate market since the beginning of this year.”

Previously, in October 2022, VIB successfully took out a $150 million loan from the IFC with similar terms to help individuals access home loans.

VIB’s total credit limit with the IFC, the ADB, and leading international financial institutions has now reached nearly $2 billion, which is evidence of the trust placed in the bank by partners.

With this new capital mobilization, VIB will have additional resources to continue expanding credit to meet retail customer demand while optimizing profit margins during a period of potential growth and maintaining a profitable interest rate among industry peers.